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Centene Q3 Earnings Beat Estimates on Medicare Strength
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Key Takeaways
Centene's Q3 adjusted EPS rose 16% to 58 cents, beating estimates as revenues grew 1.9% to $50.65 billion.
Medicare revenues climbed 19.9%, while higher premium yields and PDP membership growth helped.
Centene raised its 2026 adjusted EPS above $5.20, even as total membership fell 8.1% to 25.7 million.
Centene Corporation (CNC - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of 58 cents, up 16.0% from 50 cents a year ago. The bottom line beat the Zacks Consensus Estimate of 7 cents by 728.6%.
Revenues totaled $50.65 billion, which rose 1.9% year over year. The top line beat the consensus mark by 7.6%.
Centene’s third-quarter results benefited from higher premium and service revenues, supported by increased premium yield, growth in Prescription Drug Plan (“PDP”) membership, rate increases in Marketplace and Medicaid, and state-directed payments. These gains were partly offset by lower Medicaid and Marketplace membership.
Centene Corporation Price, Consensus and EPS Surprise
Revenues from Medicare advanced 19.9% year over year to $11.3 billion, and Medicaid revenues of $24.1 billion rose 4% in the quarter under review. Commercial revenues amounted to $8.7 billion, down 21% year over year.
Centene's premium of $44.4 billion grew 0.5% year over year on the back of higher premiums yield, increased membership in the PDP business and strength in the Medicaid and Marketplace rate hikes. The metric beat the Zacks Consensus Estimate of $42.6 billion.
Service revenues declined from $772 million to $735 million (down 4.8%) and missed the consensus mark of $802.1 million. Investment and other income of $333 million decreased 26% year over year and missed the Zacks Consensus Estimate of $343.5 million.
Total membership was 25.7 million as of Sept. 30, 2026, down 8.1% year over year due to membership declines in the Medicaid, Marketplace and Medicare businesses. However, the metric marginally beat the consensus mark of 25.5 million.
Centene's health benefits ratio remained unchanged at 92.7% year over year in the third quarter. Operating expenses totaled $50.95 billion, which declined 10.1% year over year, largely reflecting the absence of a $6.7 billion impairment charge recorded a year ago. Medical costs increased 0.6% year over year to $41.1 billion from $40.9 billion.
Adjusted net earnings rose 18.4% year over year to $290 million from $245 million.
CNC’s Q3 Financial Update (As of Sept. 30, 2026)
Centene exited the third quarter with cash and cash equivalents of $20.7 billion, which rose 15.7% from the 2025-end level. Total assets of $79.3 billion grew 3.3% from the figure as of 2025-end.
Long-term debt amounted to $15.5 billion, down 10.9% from the figure as of Dec. 31, 2025. The current portion of long-term debt totaled $88 million.
Total stockholders’ equity of $22.3 billion increased 11.2% from the 2025-end figure.
Operating activities resulted in a cash outflow of $3.7 billion during the quarter, primarily due to the timing of pass-through, premium and other payments. For the first nine months, operating cash inflows totaled $4.3 billion, down from $4.7 billion in the year-ago period.
CNC’s Revised 2026 Guidance
Management raised its full-year adjusted earnings guidance by 40 cents to greater than $5.20 per share. The GAAP earnings guidance was also raised above $3.46 per share.
Centene now projects total revenues to be between $196.5 billion and $200.5 billion for 2026, with premium and service revenues of $173.0-$177.0 billion. The full-year HBR target is 90.4% to 91.1%, and its midpoint has improved 15 basis points to 90.75%.
The adjusted SG&A expense ratio is expected to range from 6.9% to 7.5%, while the adjusted effective tax rate is projected at 25.5-26.5%.
Shares outstanding are projected to range between 497 million and 500 million in 2026.
Humana is scheduled to report its third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for a loss is pegged at $1.03 per share, which has witnessed one upward revision and two downward revisions over the past 60 days. The company beat earnings estimates in each of the past four quarters, with an average surprise of 9.6%. The consensus estimate for Humana’s third-quarter revenues is pinned at $40.46 billion, indicating a 23.9% year-over-year increase.
Phibro Animal Health is scheduled to report third-quarter 2026 results on Nov. 4, after the market closes. The Zacks Consensus Estimate for earnings is pegged at 79 cents per share, which has remained stable over the past 60 days. It beat earnings estimates in each of the trailing four quarters, with the average surprise being 18.4%. The consensus estimate for PAHC’s third-quarter 2026 revenues is pinned at $379.02 million, indicating a 4.2% year-over-year increase.
Concentra Group is scheduled to report third-quarter 2026 results on Nov. 5, after the market closes. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at 45 cents per share, indicating a 15.4% year-over-year increase. It beat earnings estimates in each of the trailing four quarters, with the average surprise being 16.3%. The consensus estimate for CON’s third-quarter 2026 revenues is pinned at $600.15 million, implying 4.8% year-over-year growth.
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Centene Q3 Earnings Beat Estimates on Medicare Strength
Key Takeaways
Centene Corporation (CNC - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of 58 cents, up 16.0% from 50 cents a year ago. The bottom line beat the Zacks Consensus Estimate of 7 cents by 728.6%.
Revenues totaled $50.65 billion, which rose 1.9% year over year. The top line beat the consensus mark by 7.6%.
Centene’s third-quarter results benefited from higher premium and service revenues, supported by increased premium yield, growth in Prescription Drug Plan (“PDP”) membership, rate increases in Marketplace and Medicaid, and state-directed payments. These gains were partly offset by lower Medicaid and Marketplace membership.
Centene Corporation Price, Consensus and EPS Surprise
Centene Corporation price-consensus-eps-surprise-chart | Centene Corporation Quote
Quarterly Operational Update of CNC
Revenues from Medicare advanced 19.9% year over year to $11.3 billion, and Medicaid revenues of $24.1 billion rose 4% in the quarter under review. Commercial revenues amounted to $8.7 billion, down 21% year over year.
Centene's premium of $44.4 billion grew 0.5% year over year on the back of higher premiums yield, increased membership in the PDP business and strength in the Medicaid and Marketplace rate hikes. The metric beat the Zacks Consensus Estimate of $42.6 billion.
Service revenues declined from $772 million to $735 million (down 4.8%) and missed the consensus mark of $802.1 million. Investment and other income of $333 million decreased 26% year over year and missed the Zacks Consensus Estimate of $343.5 million.
Total membership was 25.7 million as of Sept. 30, 2026, down 8.1% year over year due to membership declines in the Medicaid, Marketplace and Medicare businesses. However, the metric marginally beat the consensus mark of 25.5 million.
Centene's health benefits ratio remained unchanged at 92.7% year over year in the third quarter. Operating expenses totaled $50.95 billion, which declined 10.1% year over year, largely reflecting the absence of a $6.7 billion impairment charge recorded a year ago. Medical costs increased 0.6% year over year to $41.1 billion from $40.9 billion.
Adjusted net earnings rose 18.4% year over year to $290 million from $245 million.
CNC’s Q3 Financial Update (As of Sept. 30, 2026)
Centene exited the third quarter with cash and cash equivalents of $20.7 billion, which rose 15.7% from the 2025-end level. Total assets of $79.3 billion grew 3.3% from the figure as of 2025-end.
Long-term debt amounted to $15.5 billion, down 10.9% from the figure as of Dec. 31, 2025. The current portion of long-term debt totaled $88 million.
Total stockholders’ equity of $22.3 billion increased 11.2% from the 2025-end figure.
Operating activities resulted in a cash outflow of $3.7 billion during the quarter, primarily due to the timing of pass-through, premium and other payments. For the first nine months, operating cash inflows totaled $4.3 billion, down from $4.7 billion in the year-ago period.
CNC’s Revised 2026 Guidance
Management raised its full-year adjusted earnings guidance by 40 cents to greater than $5.20 per share. The GAAP earnings guidance was also raised above $3.46 per share.
Centene now projects total revenues to be between $196.5 billion and $200.5 billion for 2026, with premium and service revenues of $173.0-$177.0 billion. The full-year HBR target is 90.4% to 91.1%, and its midpoint has improved 15 basis points to 90.75%.
The adjusted SG&A expense ratio is expected to range from 6.9% to 7.5%, while the adjusted effective tax rate is projected at 25.5-26.5%.
Shares outstanding are projected to range between 497 million and 500 million in 2026.
CNC’s Zacks Rank & Key Picks
Centene currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Medical space are Humana Inc. (HUM - Free Report) , Phibro Animal Health Corporation (PAHC - Free Report) and Concentra Group Holdings Parent, Inc. (CON - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Humana is scheduled to report its third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for a loss is pegged at $1.03 per share, which has witnessed one upward revision and two downward revisions over the past 60 days. The company beat earnings estimates in each of the past four quarters, with an average surprise of 9.6%. The consensus estimate for Humana’s third-quarter revenues is pinned at $40.46 billion, indicating a 23.9% year-over-year increase.
Phibro Animal Health is scheduled to report third-quarter 2026 results on Nov. 4, after the market closes. The Zacks Consensus Estimate for earnings is pegged at 79 cents per share, which has remained stable over the past 60 days. It beat earnings estimates in each of the trailing four quarters, with the average surprise being 18.4%. The consensus estimate for PAHC’s third-quarter 2026 revenues is pinned at $379.02 million, indicating a 4.2% year-over-year increase.
Concentra Group is scheduled to report third-quarter 2026 results on Nov. 5, after the market closes. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at 45 cents per share, indicating a 15.4% year-over-year increase. It beat earnings estimates in each of the trailing four quarters, with the average surprise being 16.3%. The consensus estimate for CON’s third-quarter 2026 revenues is pinned at $600.15 million, implying 4.8% year-over-year growth.